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Questions: Mortgage approval in principle

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  • 20-05-2012 8:06pm
    #1
    cm
    Closed Accounts Posts: 6 ✭


    1) How long is an approval in principle usually valid? Is this different from bank to bank?
    2) Are there any consequences if it is not utilised? E.g. will it be harder to get approved in principle the next time, a register, ...?


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    #2
    blueturnip
    Registered Users Posts: 166 ✭✭blueturnip


    cm wrote: »
    1) How long is an approval in principle usually valid? Is this different from bank to bank?
    2) Are there any consequences if it is not utilised? E.g. will ba harder to get approved in principle the next time, a register, ...?

    Unfortunately I can't answer question 2, but our AIP was valid for 3 months. This was with AIB. We now have our full loan approval and this is also valid for 3 months.


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    #3
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Validity of approval in principle will vary from institution to institution- however in general its between 8 and 12 weeks, its unusual to get longer. During the boom many of the approvals in principle weren't time limited at all......

    With respect of whether utilisation of the approval in principle has any effect on your credit rating- it does not. There may possibly be a record that your credit rating was checked by the proposed lender- that would however be the extent of it- and it certainly would have no bearing whatsoever on the rating.


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    #4
    Marcusm
    Registered Users Posts: 10,320 ✭✭✭✭Marcusm


    smccarrick wrote: »
    Validity of approval in principle will vary from institution to institution- however in general its between 8 and 12 weeks, its unusual to get longer. During the boom many of the approvals in principle weren't time limited at all......

    With respect of whether utilisation of the approval in principle has any effect on your credit rating- it does not. There may possibly be a record that your credit rating was checked by the proposed lender- that would however be the extent of it- and it certainly would have no bearing whatsoever on the rating.

    The checking of credit standing will very definitely have an impact on your credit score on most banks internal systems as will indeed any confirmed available facilities. Ie if the AIP is reported to the credit bureau, other banks systems may caution against approval of further facilities.


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